The city’s streets and businesses will be adorned with Chinese lanterns and decorations for the festival, which will run January 26-February 9.
Among the many events on offer will be a scenic train journey highlighting the region’s Chinese settlers, Chinese-themed tours of Larnach Castle and Olveston, wildlife cruises, talks and demonstrations and a series of events at Lan Yuan Dunedin Chinese Garden — including Chinese New Year celebrations on February 1.
In addition, stories of Dunedin’s important early Chinese settlers, including those who stayed after the Otago Gold Rush of the 1860s and established businesses, will be highlighted in the Octagon "lightboxes".
Coming off the back of last year’s successful celebrations of the 30th anniversary of the Dunedin-Shanghai sister city relationship, the Chinese Cultural Festival has been welcomed by the local Chinese community.
Lan Yuan Dunedin Chinese Garden Trust chairman Malcolm Wong said the creation of the festival was an acknowledgement of the enduring significance of Chinese culture in Dunedin.
"The Chinese New Year period is the most important family and cultural festival for Chinese people," Mr Wong said.
"In China, it is a fortnight-long spring festival, so the Dunedin festival will be more aligned with that.
"Everyone is happy and looking forward to the Chinese New Year celebrations and the festival."
Having the community and city coming together for the extended period of the festival showed "the special place Chinese people, culture and stories" had in the "fabric of the city", Mr Wong said.
The festival would not only allow the city’s Chinese community to shine, but would also help to amplify the voices of the city’s other ethnic communities, he said.
Lan Yuan was benefiting from its connection to the prestigious Yu Garden in Shanghai, which was providing expert assistance with some maintenance as well as hosting a reciprocal photographic exhibition.
Dunedin Railways general manager commercial operations Rebekah Jenkins said it was a thrill to be part of the festival.
"Events like this bring the city alive, creating unforgettable experiences for visitors while celebrating the rich cultural heritage that shapes our community," she said.
Enterprise Dunedin destination manager Sian Sutton said the festival was part of a recent re-imagining of events for the city, alongside the Christmas in the Garden event and the new George St Market happening next month.
"Events like these bring value to local communities and attract visitors, as they showcase Dunedin as a vibrant, diverse, welcoming city," she said.